What Is Personal Loan Disbursal?

A personal loan is a type of unsecured loan from a bank or a non-banking financial company (NBFC) to meet their individual needs. As they are unsecured, interest rates on personal loans are higher than those on home, car, or gold loans. 

Such loans are provided based on income level, credit and employment history, repayment capacity, and much more. To get a personal loan, one must have a regular income source. Generally, such a loan is sanctioned to a salaried individual, self-employed business person, or a professional. 

What is Loan Disbursal?

Loan disbursement is the stage in which the banks or NBFCs transfer the loan amount to the borrower’s bank account. The borrower seeking a loan for any purpose finds the loan amount (either in whole or partial) in his bank account, and he can use the funds for the purpose for which he has taken the loan.

Once you make the loan application, the loan is disbursed to the lender within 7 – 10 working days. The range of days may vary across lenders and the time taken in the due diligence process they carry before disbursement of the loan. 

Also Read: 5 Mistakes To Avoid While Applying For Personal Loans

Loan Application Process

The first step is to apply for the loan either through the bank/ NBFC or by going to their branch office. The borrower will be required to enter the details asked in the loan application form. Along with the loan application, the borrower will be required to submit identification cards, utility bills, income-tax returns, credit reports, and many more. The banks/ NBFC may ask for additional papers based on their policies. 

Steps to loan disbursal

• Once the borrower has successfully submitted the loan application along with the necessary documents, the bank/ NBFC will check whether the borrower is eligible for the loan. 
• If eligible, the borrower will be intimated about the same.
• The bank/ NBFC will verify the documents submitted by the borrower and check the authenticity of documents and the borrower’s creditworthiness. The bank/ NBFC may ask for additional documents at this stage if required.
• If the loan application clears all the checks, the loan is approved, and the banks/ NBFC will intimate the approved loan amount and issue a sanction letter to the borrower.
• The bank/ NBFC will share the loan agreement that will state the loan details and the repayment schedule.
• Once all the legal requirements are completed, the loan amount will be credited to the borrower’s account.

Also Read: Personal Loans For Business

How Navi Instantly Disburses Personal Loan

Navi offers personal loans for amounts up to Rs.20 lakh for a maximum of 6 years at interest rates starting from 9.9% p.a. The process is simple and 100% paperless. The borrower must download the Navi app, enter the loan and (Equal monthly installments) EMI amount, complete the Know your customer (KYC) process by uploading the PAN and Aadhar and enter their bank details. 

The loan amount will instantly be credited to the borrower’s account. If you’re planning to buy a house, you can download the Navi app and apply for a home loan. You can get home loans up to Rs. 10 crores at attractive interest rates starting from 6.46% p.a.

FAQs on Personal Loan Disbursal

1. What collateral does the borrower have to mortgage for the loan?

Personal loans are 100% collateral-free unsecured loans. So, there is no need to mortgage any collateral against the loan.

2. Do I need to submit documents if I am taking a personal loan from Navi?

No. You are not required to submit any physical copies of your documents. You only need to upload the PAN and Aadhar on the Navi app to apply for the loan.

3. In how many days the loan amount will be credited?

The loan amount will be disbursed instantly once all the required details/ documents are entered and uploaded on the Navi app. If your personal details are correct and you meet the eligibility criteria, the loan will be disbursed in 20 minutes directly into your account.

4. How long does it take for loan disbursals to get processed?

The timeline is different for different lenders. However, with Navi’s, you can get a loan in minutes. 

5. How do I find out my loan details?

Existing bank customers can use their net banking accounts to track the status of their loan applications. To check the status of your application, log in to your account and click on the Loans section. With Navi, you can track your loan details through the Navi app.

6. How do I check my loan status?

For any financial queries, including a Personal loan, a person can verify the loan status by calling the customer service numbers. You can also speak with the officer in charge of the branch where you applied for a personal loan regarding the status of your application.

7. What is my loan ID number?

A: Your Loan ID is a three-digit number that indicates the sort of loan you have (new vehicle, adjustable-rate mortgage, line of credit, etc.). Your Loan ID is not the same as your Account Number.

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